HYDERABAD: The Andhra Pradesh Stamps and Registration officials on Wednesday launched searches in the Margadarsi Chit Fund Corporate Office at Fateh Maidan Road in the city of Hyderabad. Officials stated that even after conducting searches, no records were provided or submitted pertaining to information from the last eight years. The information about the depositors was also not given, they stated.

The Margadarsi officials had also prevented the media from speaking to officials or providing any information. A section of the media was also allegedly manhandled by Margadarsi officials and they were contained at the gates itself. Police personnel was deployed to accompany the officials into the building.

An investigation is being conducted on financial irregularities and the diversion of funds. It is reported that notices could be issued to the Margadarsi Hyderabad offices. The department undertook the search after it noticed that the money raised through chits was being diverted to other activities in the State of Andhra Pradesh. It had also found that the records and accounts were not in order and finance business was carried out without proper clearance.

It may be recollected that state-wide inspections were conducted in 35 chit fund companies including Margadarsi Chit Funds Pvt Ltd, in the State of Andhra Pradesh where large-scale financial irregularities had come to the fore. Inspector General of Stamps and Registrations and Andhra Pradesh Registrar of Chit Funds V Ramakrishna revealed that money collected from depositors by Margadarsi Chit Fund company was diverted to Ushodaya Enterprises, Ushakiran Movies, and other companies promoted by Eenadu group chairman Ch Ramoji Rao. Stamps and Registration officials conducted searches in 18 units in Andhra Pradesh.

Also Read: Margadarsi Chit Fund Irregularities: Funds Diverted To Ushakiran, Ushodaya Enterprises